{"id":"https://openalex.org/W2889720453","doi":"https://doi.org/10.3386/w2269","title":"Regulation and the Provision of Quality to Heterogenous Consumers: The Case of Prospective Pricing of Medical Services","display_name":"Regulation and the Provision of Quality to Heterogenous Consumers: The Case of Prospective Pricing of Medical Services","publication_year":1987,"publication_date":"1987-05-01","ids":{"openalex":"https://openalex.org/W2889720453","doi":"https://doi.org/10.3386/w2269","mag":"2889720453"},"language":"en","primary_location":{"id":"doi:10.3386/w2269","doi":"https://doi.org/10.3386/w2269","is_oa":true,"landing_page_url":"https://doi.org/10.3386/w2269","pdf_url":"https://doi.org/10.3386/w2269","source":{"id":"https://openalex.org/S2809516038","display_name":"National Bureau of Economic Research","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":["https://openalex.org/P4322614461"],"host_organization_lineage_names":["National Bureau of Economic Research"],"type":"repository"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"National Bureau of Economic Research","raw_type":"report"},"volume":null,"type":"report","indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"green","oa_url":"https://doi.org/10.3386/w2269","any_repository_has_fulltext":true},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5037633984","display_name":"Robin Allen","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I1314586196","display_name":"United States Department of Justice","ror":"https://ror.org/02916qm60","country_code":"US","type":"government","lineage":["https://openalex.org/I1314586196"]},{"id":"https://openalex.org/I136199984","display_name":"Harvard University","ror":"https://ror.org/03vek6s52","country_code":"US","type":"education","lineage":["https://openalex.org/I136199984"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Robin Allen","raw_affiliation_strings":["Department of Justice Department of Health Policy Anti-Trust Division and Management Judiciary Center Building Harvard School of Public Health 555 4th Street , NW 677 Huntington Avenue Washington , DC 20001 Boston , MA 02115","U.S. Department of Justice, Washington DC, USA"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Justice Department of Health Policy Anti-Trust Division and Management Judiciary Center Building Harvard School of Public Health 555 4th Street , NW 677 Huntington Avenue Washington , DC 20001 Boston , MA 02115","institution_ids":["https://openalex.org/I1314586196","https://openalex.org/I136199984"]},{"raw_affiliation_string":"U.S. Department of Justice, Washington DC, USA","institution_ids":["https://openalex.org/I1314586196"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5016757546","display_name":"Paul Gertler","orcid":"https://orcid.org/0000-0003-0280-7513","observed_orcids":["https://orcid.org/0000-0003-0280-7513"]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"Paul Gertler","raw_affiliation_strings":["Santa Monica, USA"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Santa Monica, USA","institution_ids":[]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":2,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":null,"apc_paid":null,"fwci":null,"has_fulltext":true,"cited_by_count":44,"citation_normalized_percentile":null,"cited_by_percentile_year":null,"biblio":{"volume":null,"issue":null,"first_page":null,"last_page":null},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10391","display_name":"Healthcare Policy and Management","score":0.9937000274658203,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10391","display_name":"Healthcare Policy and Management","score":0.9937000274658203,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11531","display_name":"Healthcare Systems and Reforms","score":0.0024999999441206455,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11792","display_name":"Pharmaceutical Economics and Policy","score":0.0007999999797903001,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/prospective-payment","display_name":"prospective payment","score":0.7559999823570251},{"id":"https://openalex.org/keywords/quality-discrimination","display_name":"quality discrimination","score":0.8690000176429749},{"id":"https://openalex.org/keywords/consumer-heterogeneity","display_name":"consumer heterogeneity","score":0.8029999732971191},{"id":"https://openalex.org/keywords/medical-service-pricing","display_name":"medical service pricing","score":0.5730000138282776},{"id":"https://openalex.org/keywords/third-party-payers","display_name":"third-party payers","score":0.7300000190734863},{"id":"https://openalex.org/keywords/health-maintenance-organizations","display_name":"health maintenance organizations","score":0.6010000109672546},{"id":"https://openalex.org/keywords/managed-care","display_name":"managed care","score":0.9629999995231628},{"id":"https://openalex.org/keywords/vertical-integration","display_name":"vertical integration","score":0.8389999866485596},{"id":"https://openalex.org/keywords/diagnosis-related-groups","display_name":"diagnosis-related groups","score":0.6589999794960022},{"id":"https://openalex.org/keywords/health-insurance","display_name":"health insurance","score":0.3179999887943268}],"concepts":[{"id":"https://openalex.org/C100243477","wikidata":"https://www.wikidata.org/wiki/Q12002092","display_name":"Welfare","level":2,"score":0.6402570009231567},{"id":"https://openalex.org/C145097563","wikidata":"https://www.wikidata.org/wiki/Q1148747","display_name":"Payment","level":2,"score":0.6350071430206299},{"id":"https://openalex.org/C536738050","wikidata":"https://www.wikidata.org/wiki/Q3249071","display_name":"Social Welfare","level":2,"score":0.6298250555992126},{"id":"https://openalex.org/C2777780509","wikidata":"https://www.wikidata.org/wiki/Q1377422","display_name":"Profit maximization","level":3,"score":0.5471977591514587},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.5469900369644165},{"id":"https://openalex.org/C2779245251","wikidata":"https://www.wikidata.org/wiki/Q7250835","display_name":"Prospective payment system","level":3,"score":0.5390204191207886},{"id":"https://openalex.org/C2779530757","wikidata":"https://www.wikidata.org/wiki/Q1207505","display_name":"Quality (philosophy)","level":2,"score":0.5198907852172852},{"id":"https://openalex.org/C181622380","wikidata":"https://www.wikidata.org/wiki/Q26911","display_name":"Profit (economics)","level":2,"score":0.47899553179740906},{"id":"https://openalex.org/C160735492","wikidata":"https://www.wikidata.org/wiki/Q31207","display_name":"Health care","level":2,"score":0.4779343903064728},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.4281255304813385},{"id":"https://openalex.org/C100001284","wikidata":"https://www.wikidata.org/wiki/Q2248246","display_name":"Public economics","level":1,"score":0.40621060132980347},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.34862393140792847},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.3243260979652405},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.1800348162651062},{"id":"https://openalex.org/C34447519","wikidata":"https://www.wikidata.org/wiki/Q179522","display_name":"Market economy","level":1,"score":0.08338087797164917},{"id":"https://openalex.org/C111472728","wikidata":"https://www.wikidata.org/wiki/Q9471","display_name":"Epistemology","level":1,"score":0.0},{"id":"https://openalex.org/C50522688","wikidata":"https://www.wikidata.org/wiki/Q189833","display_name":"Economic growth","level":1,"score":0.0},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.0},{"id":"https://openalex.org/C138885662","wikidata":"https://www.wikidata.org/wiki/Q5891","display_name":"Philosophy","level":0,"score":0.0},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.0}],"mesh":[],"locations_count":2,"locations":[{"id":"doi:10.3386/w2269","doi":"https://doi.org/10.3386/w2269","is_oa":true,"landing_page_url":"https://doi.org/10.3386/w2269","pdf_url":"https://doi.org/10.3386/w2269","source":{"id":"https://openalex.org/S2809516038","display_name":"National Bureau of Economic Research","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":["https://openalex.org/P4322614461"],"host_organization_lineage_names":["National Bureau of Economic Research"],"type":"repository"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"National Bureau of Economic Research","raw_type":"report"},{"id":"pmh:oai:RePEc:nbr:nberwo:2269","doi":null,"is_oa":false,"landing_page_url":"http://www.nber.org/papers/w2269.pdf","pdf_url":"http://www.nber.org/papers/w2269.pdf","source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"preprint"}],"best_oa_location":{"id":"doi:10.3386/w2269","doi":"https://doi.org/10.3386/w2269","is_oa":true,"landing_page_url":"https://doi.org/10.3386/w2269","pdf_url":"https://doi.org/10.3386/w2269","source":{"id":"https://openalex.org/S2809516038","display_name":"National Bureau of Economic Research","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":["https://openalex.org/P4322614461"],"host_organization_lineage_names":["National Bureau of Economic Research"],"type":"repository"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"National Bureau of Economic Research","raw_type":"report"},"sustainable_development_goals":[{"score":0.504800021648407,"id":"https://metadata.un.org/sdg/3","display_name":"Good health and well-being"}],"sustainable_development_goals_aurora":[{"score":0.7099999785423279,"id":"https://metadata.un.org/sdg/10","display_name":"Reduced inequalities"}],"study_designs":[],"awards":[],"funders":[],"has_content":{"grobid_xml":true,"pdf":true},"content_urls":{"pdf":"https://content.openalex.org/works/W2889720453.pdf","grobid_xml":"https://content.openalex.org/works/W2889720453.grobid-xml"},"referenced_works_count":4,"referenced_works":["https://openalex.org/W2019013402","https://openalex.org/W2022125871","https://openalex.org/W2029099429","https://openalex.org/W2399324596"],"related_works":["https://openalex.org/W1515255737","https://openalex.org/W1977664676","https://openalex.org/W7084198302","https://openalex.org/W4390057362","https://openalex.org/W2023729436","https://openalex.org/W2899146403","https://openalex.org/W191576390","https://openalex.org/W1542821431","https://openalex.org/W4403561281","https://openalex.org/W2765600087"],"abstract_inverted_index":{"This":[0],"paper":[1],"analyzes":[2],"the":[3,30,101,127,164,177,182],"welfare":[4,56,103,206],"implications":[5],"of":[6,33,44,79,94,119,134,159,167,185],"fixed":[7],"price":[8,128],"regulation":[9,125],"in":[10,13,58],"a":[11,19,54,64,73,88],"model":[12],"which":[14],"consumers":[15],"are":[16,205],"heterogenous":[17],"and":[18,38,198],"firm":[20],"can":[21],"endogenously":[22],"quality":[23,80,95,120,140],"discriminate.The":[24],"motivation":[25],"for":[26],"this":[27,155],"analysis":[28],"is":[29,49,115,170],"current":[31],"move":[32],"third":[34,160],"party":[35,161],"payors":[36,162],"(governmental":[37],"private":[39],"insurors)":[40],"toward":[41],"prospective":[42,51,61,123],"pricing":[43,52,62,144],"medical":[45,67,168],"services.Our":[46],"major":[47],"result":[48],"that":[50,181],"causes":[53],"distributional":[55,102],"loss.Specifically,":[57],"our":[59],"model,":[60],"induces":[63],"profit":[65,113],"maximizing":[66],"care":[68,169,189,200],"provider":[69,196],"to":[70,81,96,139,149,152,172,175],"simultaneously":[71],"provide":[72],"smaller":[74],"than":[75,90],"socially":[76,91],"optimal":[77,92],"level":[78],"more":[82],"severely":[83,98],"ill":[84,99],"patients":[85,130],"and,":[86],"surprisingly,":[87],"greater":[89],"amount":[93],"less":[97],"patients.Further,":[100],"loss":[104],"does":[105],"not":[106,147],"disappear":[107],"when":[108],"ethically":[109],"motivated":[110],"deviation":[111],"from":[112],"maximization":[114],"allowed.The":[116],"inefficient":[117],"distribution":[118],"occurs":[121],"because":[122],"payment":[124],"fixes":[126],"across":[129],"with":[131],"different":[132],"seventies":[133],"illness":[135],"but":[136],"allows":[137],"providers":[138],"discriminate.More":[141],"complicated":[142],"DRG":[143],"rules":[145],"do":[146],"appear":[148],"be":[150,173],"able":[151,174],"completely":[153],"avoid":[154],"problem.Alternatively,":[156],"vertical":[157],"integration":[158],"into":[163],"direct":[165],"provision":[166],"shown":[171],"bypass":[176],"problem":[178],"completely.This":[179],"implies":[180],"recent":[183],"proliferation":[184],"vertically":[186],"integrated":[187],"health":[188,192],"organizations":[190],"such":[191],"maintenance":[193],"organizations,":[194,197],"preferred":[195],"managed":[199],"plans":[201],"by":[202],"self-insuring":[203],"employers":[204],"improving.":[207]},"counts_by_year":[{"year":2021,"cited_by_count":1},{"year":2019,"cited_by_count":2},{"year":2018,"cited_by_count":1},{"year":2016,"cited_by_count":2},{"year":2014,"cited_by_count":1},{"year":2013,"cited_by_count":3},{"year":2012,"cited_by_count":3}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2018-09-27T00:00:00"}
